Japan Airlines (9201) Q1 2027 earnings summary

Executive summary

• Achieved record-high revenue in FY2026Q1, rising 11.2% year-over-year to ¥523.7 billion, driven by strong international passenger and cargo demand despite demand shifts, soaring fuel costs, and yen depreciation.

• EBIT dropped 72.1% year-over-year to ¥12.7 billion, with net profit down 80.2% to ¥5.3 billion, reflecting sharply increased operating expenses, especially fuel.

• Maintained profitability and resilience through agile pricing, diversified non-aviation revenue streams, and business model transformation.

• Issued Series 1 Bond-Type Class Stock in June 2026 to fund growth investments, including new aircraft purchases.

Financial highlights

• Revenue rose 11.2% year-over-year to ¥523.7 billion; EBIT dropped 72.1% to ¥12.7 billion due to a 58.4% surge in fuel costs.

• Net profit declined 80.2% year-over-year to ¥5.3 billion; EBIT margin fell from 9.7% to 2.4%.

• Operating expenses increased 18.7% year-over-year to ¥516.8 billion, with fuel costs up ¥54.8 billion to ¥148.8 billion.

• EBITDA margin decreased from 18.3% to 10.6%.

• Cash and cash equivalents at quarter-end were ¥1,157.4 billion, up ¥147.2 billion from March 2026.

Outlook and guidance

• FY2026 full-year revenue forecast at ¥2,095 billion (+4.1% year-over-year), with EBIT expected to recover to ¥180 billion and net profit to ¥110 billion.

• EBIT margin projected to improve to 8.6% for the full year.

• Dividend forecast unchanged at ¥96 per share for FY2027.

• Ongoing market volatility in fuel and FX rates could significantly impact profit; hedging and fuel surcharges are in place to mitigate risks.